Bonds payable-issued between interest dates
Barney Corporation received authorization on December 31, Year 1, to issue $2,500,000 of 6%, 10-year bonds. The interest payment dates are June 30 and December 31. All the bonds were issued at a price of 100, plus accrued interest, on February 28, Year 2, two months after the authorization of the bond issue.
(d) Prepare the journal entry at February 28, Year 2, to record the issuance of the bonds.
(e) Prepare the journal entry at June 30, Year 2 to record the first semiannual interest payment on the bonds.
Definitions:
Title
A formal right of ownership of property, indicating the holder has legal control and rights regarding its use or transfer.
Risk
Potential loss from destruction or damage to goods, injury, or other eventuality.
Seller's Place
The physical or juridical location where the seller operates, often relevant in legal and commercial transactions.
Freedom of Contract
The principle that individuals have the liberty to freely enter into contracts and agree on terms without undue interference.
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